Companies step up their commitment to clean energy

MARRAKECH, MOROCCO: Amidst worries about changes in the climate and energy policy of the United States, companies and businesses stepped up their commitment to a decarbonized clean energy path.

As officials and representatives from 190-odd countries discuss and debate the rules that would help make the Paris Agreement a reality, the energy sector is undergoing a quiet change. Clean energy is no longer the pie in the sky dream. Companies from energy intensive sectors are stepping up and committing to move from fossil-fuels to renewable energy sources. The latest in this line is Indian cement major Dalmia Cement.

On Friday, Dalmia Cement became the first company in the sector to commit to a total switch to renewable power. The company joined the RE100, a global collaborative initiative of the world’s most influential companies committed to 100% renewable power. Dalmia Cement is the third Indian company to join this initiative. InfosysBSE 1.04 % and Tata MotorsBSE -9.54 % are the other two Indian companies.

“We are scaling up our ambition to double our energy productivity and make a long term transition to 100% renewable power, achieving a fourfold increase in the percentage of renewable energy in our electricity consumption by 2030,” said Mahendra Singhi, Group CEO, Dalmia Cement (Bharat) Limited.

As hosts of the annual UN-sponsored climate meet, Morocco is keen to push forward concrete efforts that will help keep global temperature rise to well below 2 degrees Celsius. The focus on clean energy is part of this effort.

The announcement by Dalmia Cement and other companies like Philips Lighting and Swiss Re, which committed to double their energy productivity, are indicative of the transformation of the energy sector that is already underway.

The participation of Indian companies in global initiatives like RE100 point to a similar trend domestically. "The transformation of the Indian electricity sector has gained virtually irreversible momentum, driven by strong policy focus and the significant financial advantage that renewable energy has over other sources of electricity,” said Jai Sharda, research analyst consultant for Institute for Energy Economics and Financial Analysis (IEEFA).